The Role of the Private Sector

Abstract

Drawing from the Bubble Theory, and more specifically, the framework of enlightened needs (ENs) and fair development (FD), I now embark on the prescriptive components of this book. In this chapter, I discuss the role the private sector should play, specifically, how a for-profit business should operate in this environment. The most important role of the private sector is to maximize profit for shareholders—no more, no less. After clarifying the position of private sector members, I discuss demand from two angles. The first is the source of demand, either from the ENs or FD. The second is the three types of customers: individuals, other members of the private sector, and members of the public sector. I then propose the concept of bubble audit that a firm can use to identify its Achilles’ heel, and those of its competitors and (business) customers relative to current demands. Guided by both identified demands and the results of the bubble audit, I discuss how the private sector should identify opportunities and create value for itself through innovation. I conclude this chapter by suggesting modifications to the organizational structures of firms that will facilitate their quests for value creation in the face of new types of business opportunities.